Getting started with Multifamily properties

9 Replies

Over the last 2 weeks I've been focusing on trying to figure out the process of buying my first true multifamily investmet.

I've done single family and it was nerve racking because anytime there is maintenance the profit gets wiped out.

Point is, I'm committed to focusing on multifamily but I need resources. 

What is out there that has helped you understand the multifamily investing game? What lending sources are reputable that will work with a new investor? What is the most straight forward way to get started?

@Michael S Malbrough

The BP podcasts hands down has helped me more than anything else. I have listened to hundreds of hours. It helps you learn the real estate lingo which gives you a lot of credit when dealing with banks and other investors.

When it comes to financing, I have learned that first you need to know what you want. Are you planning to refinance after doing repairs? Make sure your bank will refinance without too long a seasoning period etc... once you know what you want, hit the phones. Call, call, and call until you find a lender who will give you what you want.

Best way to get started? That's a loaded question. I would find someone who knows more than you and bounce all of your ideas off them. A great place to start is a local REI meeting or someone from right here on BP.

You will see hundreds of times the advice "find a deal and the money will find you" nonsense. If you don't have the resources , find a partner before you find the deal. It could be family, friends, Local investors (think Real estate investment meet ups in your area). Go to a small syndicator with your deal and see if you can't get a small piece of the deal. You will learn while you earn (small yes, but you get experience)

Starting as an LP in a deal really helped me run through the process and get exposed to the structure , financing , terms, etc etc.  Not everyone’s route but It really helped me .  

Originally posted by @Seth Ferguson :

Hi @Michael S Malbrough,

What size of multifamily are you going after? 

There are lots of great books out there. Multifamily Millions is a good one to start with. If you're interested in syndicating larger deals, there are some other great books out there.

You can also check out my show, Purchase to Profits (link in signature). I interview an investor every day and many of my guests invest in multifamily.

 I'm focusing on 10-20 units because I seems yo be substantial enough that as long as the numbers work I can hold indefinitely but small enough to handle as my first deal

Originally posted by @Seth Ferguson :

@Michael S Malbrough Don't talk yourself out of the 30-50 unit range. Scale works in your favor.

 Tbh, I would love to start there.

My only real obstacles (that I'm know of now) is that I don't have access to funding yet.

But that's why im here. To learn the ropes, network with investors.

Do you know of any reputable funding sources that would work with a multifamily newbie?

@Michael S Malbrough

Confidence level goes up with education and experience. You can put more efforts into education while you're looking for your first MFH. Through books, podcasts and networking you will continue learning and reinforcing your knowledge. If you haven't read David Lindahl "Multifamily MIllions" and "Emerging Markets" (note: not the exact titles), then start with these. 

I have a ton more of recommendations through my online library. Feel free to PM for the link.